FinLexicon Term Details

Market Capitalization

It is commonly used to group companies into large-cap, mid-cap, and small-cap segments.

Category: Stock Market Difficulty: Intermediate 1 min read Sample Term

Definition

Market capitalization is the total market value of a company's outstanding shares.

Case Study

A company with 10 crore shares priced at Rs. 500 has a market capitalization of Rs. 5,000 crore.

Historical Reference

Market-cap classifications became a convenient way to compare company size and portfolio exposure.

Illustration

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